Due to Glencore’s (LON:GLEN) decision to put its Nordenham zinc smelter in Germany on care and maintenance as of November 1, zinc prices yesterday finished up 1.11% at 281.35.
According to Koen Demesmaeker, chairman of the supervisory board,. “The halt of manufacturing is a reaction to many external issues affecting the business and larger European industry”. The Energy-intensive aluminium and zinc smelter in Europe have been forced to shut down or suspend operations due to rising power prices following Russia’s invasion of Ukraine. More reductions are inevitable, according to firms. According to the smelter website, it produces about 165,000 tonnes of zinc and zinc alloys annually.
CONCERN OVER SUPPLIES
- Japan’s Toho Zinc anticipates a 5.9% y/y decline in H2 zinc production.
- Mitsui Mining of Japan anticipates a 0.2% increase in H2 zinc production.
Worries about Supplies were made worse when the London Metal Exchange stated that it would limit the supply of metals from the Russian company Ural Mining & Metallurgical Co.
In the second half of the 2022–23 fiscal year, Toho Zinc Co Ltd, Japan’s third-largest zinc smelter, aims to produce 44,300 tonnes of refined zinc, a 5.9% decrease from the first half. The largest zinc smelter in Japan, Mitsui Mining and Smelting Co, announced it will produce 110,800 tonnes of refined zinc in the second half of the fiscal year 2022–2023—an increase of 0.2% over the previous year. According to data from the International Lead and Zinc Study Group (ILZSG),. The global zinc market went from having a surplus of 34,600 tonnes a month earlier to having a deficit of 72,800 tonnes in July.
Technically the market is under short covering as the market has witnessed a drop in open interest by -1.93% to settle at 1578 while prices are up 3.1 rupees. Now Zinc is getting support at 273.8 and below same could see a test of 266.1 levels, and resistance is now likely to be seen at 288.7, a move above could see prices testing 295.9. Technically, the market is under short covering as Zinc prices are finding support at 273.8 and a break below that level could result in a test of 266.1 levels. On the other hand, a move over 288.7 could result in a challenge of 295.9 levels. – SHREE METAL PRICES.